Investor Right in Historical Perspective: Globalization and the Future of the Japanese Firm and Financial System
The evolution of investor right in Japan is examined in a historical perspective since the prewar period and in relation to the evolution in firm-specific skill formation. First, we will show that the investment in firm-specific skills spread from the top to the bottom in a firm system. Second, we will show that the delegation of control right of physical assets to employees was caused in order to accommodate the rapid technological changes. The weak investor right in Japan evolved through a rational choice of asset holders (shareholders and landlords), who delegated part of control right over their assets to actual producers (managers, workers, and tenant farmers) in order to maximize the benefits of firm-specific skill formation by them. A cautious approach is needed in adjusting the investor right to global standards: a stronger investor right would enhance allocation efficiency of financial resources, but it could be harmful to organizational efficiency based on investment in firm-specific skills.
|Date of creation:||Mar 2005|
|Date of revision:|
|Note:||February 28, 2005; Revised: March 24, 2005|
|Contact details of provider:|| Postal: 2-1 Naka, Kunitachi, Tokyo 186-8603|
Web page: http://cei.ier.hit-u.ac.jp/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Otsuka, Keijiro & Chuma, Hiroyuki & Hayami, Yujiro, 1992. "Land and Labor Contracts in Agrarian Economies: Theories and Facts," Journal of Economic Literature, American Economic Association, vol. 30(4), pages 1965-2018, December.
- Morck, Randall & Nakamura, Masao, 2004. "Been There, Done That: The History of Corporate Ownership in Japan," CEI Working Paper Series 2004-4, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.
- Arimoto, Yutaka, 2005. "State-contingent rent reduction and tenancy contract choice," Journal of Development Economics, Elsevier, vol. 76(2), pages 355-375, April.
When requesting a correction, please mention this item's handle: RePEc:hit:hitcei:2004-21. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Reiko Suzuki)
If references are entirely missing, you can add them using this form.